The State Public Service Commission Thursday approved a three year rate plan for Orange and Rockland utilities that will see electricity delivery revenues increase by $15.2 million annually during that timeframe. That will amount to an annual increase of 5.8 percent on electric bills. The company cited reasons for the hike being increases in revenue requirement driven by capital additions, increases in the return on equity, property taxes, labor costs, and costs associated with storms in the late summer and early fall last year.
The base delivery rate changes include increases in the monthly consumer charge for residential customers in rate year one from $15.60 to $18 starting July 1; to $19 starting July 1, 2013; and $20 starting in July 1, 2014.
The rate plan provides for an average 9.5 percent return on equity which is lower than the 11.25 percent requested by the company, but is consistent with investor expectations given recent commission decisions, the PSC said.